Forex Technical Update

Previous: EUR/USD Turns from 1.28, Breaks Correction Channel (11/16)

EUR/USD 4H Chart 11/19/2012 9:03AM EST

eurusd11192012h4

Sideways: EUR/USD’s price action since the second half of October have been bearish falling from 1.3138 down to 1.2660. In the past week and a half, since breaking below 1.28 on 11/7, the EUR/USD has started to trade sideways. It has consolidated between 1.28 and 1.2660. Last week’s bearish break reached 1.2689 pivot and bounced back above 1.27, but is stalling under 1.28 as we start the 11/19 US session.

Breakout scenario: If the market pushes above 1.28, we have 38.2% retraement at 1.2843, and another resistance pivot at 1.2877. Between these two targets, the EUR/USD would likely catch a falling trendline going back to the October high of 1.3138. Holding below this trendline holds a bearish outlook, while breaking above 1.29 (50% retracement)  should open up the bullish outlook.

Momentum: If bearish momentum is to be maintained, price is likely going to hold under 1.28, and the 4H RSI likely hold under 60. There is still some room down to the next key support area around 1.26.

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.

Please login to comment. Dont have an account? Register